San Diego-based Pearson Fuels has landed a $1.8 million state grant to help put biodiesel into more tanker trucks.

"We are going into a diesel terminal where diesel is sold," said Pearson General Manager Mike Lewis. "We are going to put biodiesel in there and tie it all together."

Biodiesel, made from used frying grease, soy beans or other plant matter, is supposed to fight carbon emissions.

It's expensive, and is often blended with diesel derived from petroleum and sold as B-20, a mix that is 20 percent biodiesel.

Pearson, also known as RTC Fuels, is looking at a different way of creating that blend.

Right now, a trucker will take a tanker truck to a biodiesel facility and get some biodiesel, then go to a fuel terminal and fill up the tanker with regular diesel.

It's called "splash blending."

"It's not a very efficient way of doing it," he said.

"These are the day to day infrastructure issues that hinder widespread biofuel use."

Lewis wants to bring the biodiesel directly into terminals from two companies, InterState Oil Co. in Sacramento and SoCo Group in El Cajon to make it available just like any other fuel available there.

"It would come out of the spigot already blended," said SoCo president Angus McDonald.

Carlsbad-based SoCo buys fuel from refineries and sells it to gas stations, construction companies, farms and other big users, he said.

Bringing the biodiesel into its facility will lower cost and allow for tighter quality control, McDonald said.

"Really, it's about how you can make it more economical to distribute biodiesel," he said.

High cost, he said, its a big reason biodiesel use is not widespread.

The $1.8 million grant will pay for about 60 percent of the cost of the project.

While Pearson Fuels retails biodiesel at its City Heights station, most biodiesel use is by fleets, Lewis said. B-20 costs about 16 cents more a gallon than standard diesel.

That includes hotels and municipal governments that choose to use the blend as a way of reducing their carbon emissions.

Most of the biodiesel it sells in Southern California is made from used cooking oil.

The state grant was one of $12.6 million in grants awarded last week by the California Energy Commission.

The funds come from $100 million in vehicle license fees, boat license fees, and smog check registrations targeted to fight global warming, improve air quality and foster the development of alternative fuels, said Adam Gottlieb, a spokesman for the commission.